【GE】Pessimism Grows in the Market as Graphite Electrode Prices Fall

On April 11th, graphite electrode market prices declined, ranging from 20,000 to 29,000 yuan/ton, with the average market price for mainstream specifications at 22,643 yuan/ton. Graphite electrode transaction prices are chaotic. Actual transaction prices for graphite electrodes are disordered, affected by the decline in raw material prices in the previous period. Graphite electrode enterprises are bearish on the raw material side, which has intensified the pessimistic sentiment in the graphite electrode market, leading to low-priced sales. 

Affected by the sluggish real estate market, inventory has increased, steel sales are sluggish, resulting in weak demand for graphite electrode purchases, with most purchases being made on-demand.

In terms of downstream, the average operating rate of 87 independent electric arc furnace steel mills nationwide is 76.29%, a decrease of 0.57% from the previous period and an increase of 8.99% YoY. Among them, there are slight declines in the South China, Central China, and Southwest regions, and a slight increase in the East China region.

The blast furnace operating rate of 247 steel mills is 84.30%, an increase of 0.43% from the previous week and an increase of 5.03% YoY; blast furnace ironmaking capacity utilization rate is 91.20%, an increase of 0.64% from the previous week and an increase of 6.25% YoY. Electric furnace profit loss is 178.49 yuan/ton, blast furnace profit loss is 120.75 yuan/ton, electric furnace losses are increasing, and production is declining. Overall, there is no significant rebound in market demand, steel mills are deepening their cost reduction and efficiency enhancement goals, and ultra-high power graphite electrode prices are at risk of further declines. For the future trends on the graphite electrode market, feel free to contact us.